Earnings estimates for Bonanza Creek Energy, Inc. (BCEI - Free Report) have been revised upward over the past 30 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 earnings has moved 11.7% north to $5.32 per share in last 30 days.
Bonanza Creek Energy is an independent energy exploration and production company that the extraction of oil and associated liquids-rich natural gas in the United States. The company's core operating areas are the DJ Basin in Colorado and the Cotton Valley formation in southern Arkansas. Bonanza Creek Energy, Inc. is based in Denver, CO.
Let’s focus on the factors that make Bonanza Creek Energy a profitable stock to adhere to for greater returns.
Price Appreciation: Shares of Bonanza Creek Energy have outperformed the industry over the past six months. The stock has rallied 26.5% compared with the industry’s rise of 1.9%. The stock sports a Zacks Rank #1 (Strong Buy).
Positive Earnings Surprise History: Bonanza Creek Energy's average four-quarter positive surprise stands at 215.4%, beating estimates in all the trailing four quarters.
Capex Plan: In 2017, the company incurred a capital expenditure of $109.8 million for development of oil and natural gas properties. It has a planned outlay of $280-$320 million for 2018, of which, the company has incurred nearly $37.7 million in first-quarter 2018 on exploration and development of oil and gas properties.
Considering the full-year capital expenditure, the company has one rig in operation during the first half of the ongoing year and is expected to add another by mid-2018. Also, the planned capex will be incurred to support drilling of 90 gross wells, of which, 55 are expected to come online in 2018 in the Rocky Mountain region.
Revenue Projections: The Zacks Consensus Estimate for current-year revenues is pegged at $288.1 million, translating into a significant year-over-year surge of 50%.
For 2019, the consensus estimate for total revenues stands at $429.8 million, depicting a 49.2% year-over-year increase.
Other Stocks to Consider
Some other top-ranked stocks from the Zack Oil and Energy Sector are ConocoPhillips (COP - Free Report) , Occidental Petroleum Corporation (OXY - Free Report) and BP p.l.c. (BP - Free Report) , each with a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips came up with an average four-quarter earnings surprise of 226.9%, exceeding the Zacks Consensus Estimate in all the trailing four quarters. The company’s earnings are anticipated to increase 9% over the long term.
Occidental Petroleum pulled off an average four-quarter positive surprise of 30.2%, surpassing estimates in all the preceding four quarters. The company’s bottom line is expected to grow 6.3% over the long-term period.
BP delivered an average four-quarter beat of 29.6%, outpacing expectations in three of the last four quarters. The company’s earnings are projected to gain 17.4% over the long-term period.
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